MicroStrategy invests $347M in Bitcoin as the market warms up

By: Mark Jessy

June 29, 2023 8:23 AM

MicroStrategy, a software analytics company, revealed on June 28 that the company has purchased 12,333 Bitcoin at a price of around $347 million at the time of writing. 

Following the completion of the trade, MicroStrategy's total BTC holdings grew to 152,333, valued at a total of $4.52 billion at an average price of $29,668 per coin. 

The entire average purchase price is similar to the $28,136 stated→ in the day's announcements. From April 27 to June 27, the coins were purchased. According to the firm, the purchase was partially funded by the issuance of new stock:

"MicroStrategy might from time to time publicly offer and sell shares during its class A common stock, par value $0.001 per share ("Shares"), having an aggregate offering price of up to $625.0 million through the Agents, pursuant to a Sales Agreement entered into by MicroStrategy with Cowen and Company, LLC and Canaccord Genuity LLC as sales agents, dated as of May1, 2023."

As of the 28th of June, MicroStrategy has issued and sold a total of 1,079,170 shares under the deal, bringing in net proceeds of $337,000,000. On April 5, it was reported that MicroStrategy added 1,045 BTC ($29.3 million) to its balance sheet. Michael Saylor, the company's CEO, has been a vocal supporter of Bitcoin and has led the drive for enterprises to accept the world's largest cryptocurrency by market capitalization as a strategic asset.

Despite the present bear market in cryptocurrencies, MicroStrategy has been actively buying Bitcoin using both cash and stock funding. Due to a one-time income tax gain, the company declared its first profitable quarter since 2020 in Q1 2023.